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Australians have never had it so good

New research has found that many Australian families are in a better financial position than a year ago as interest rate cuts far outweigh utility price hikes.

As utilities get more expensive and the local economy continues to struggle, Australians could be forgiven for thinking that times are tougher now than a year ago.

New analysis however, from the University of Canberra, shows that the average Australian family with a mortgage is actually $1390 better off as a result of falling interest rates countering rising electricity and gas prices.

The research conducted by the National Centre for Social and Economic Modelling (NATSEM) shows that variable interest rates have dropped around 1.35 percentage points since October last year. Given the average Australian mortgage is around the $300,000 mark, this drop in interest rates delivers around $1780 a year in savings.

Those renters who have been saving for their first home would have also seen falling savings rates impede their ability to build up enough money for a deposit on a house.Price changes over the past year